The evidence from 131 firms
Alan Benson, Danielle Li and Kelly Shue had sales records from 2005 to 2011 for workers at 131 firms. All the firms used the same sales-management software, so the researchers could see who was promoted to manager. A salesperson who sold twice as much as a colleague was 32 percent more likely to be promoted. Once promoted, a manager who had sold twice as much led a team whose members each sold 6.1 percent less. With a typical team of five, that is close to a third of one salesperson’s output gone.
The result was slightly stronger when the new manager took over a team they had never worked on. So it is unlikely to come from something particular to the old team. One record did predict better results as a manager: how many colleagues a worker had typically shared each sale with. It was not consistently linked to who got promoted.
The study measured sales. It cannot say what the top sellers did differently once they were managers. It does show that a strong record in one job was weak information about the next one.
- 32%more likely to be promoted, for a salesperson who sold twice as much as a colleague
- 6.1%lower sales for each person on the team, under a manager who had sold twice as much
- 1,553promotions to manager, among 38,843 salespeople at 131 US firms
A promotion is a move to a different arena
The new manager brings the same habits to different conditions. What is measured moves from their own output to the team’s. Feedback that used to be direct now arrives later and edited. A mistake that used to stay inside one task now reaches other people’s decisions. The people around them include former peers who now report to them.
In P×E terms, a first promotion often raises threat, because errors travel further. It often lowers stability too, because the relationships and rules of the job are new. A habit that was safe in the old arena can start to cost in the new one. That is the inference behind the rest of this article, and it is ours, not the study’s.
The rescue loop
When a task slips, the fastest fix for a former expert is to take it back. It works. The deadline is met, and the manager has fresh proof of their own competence. The team has learned something too: ownership of a task lasts until the manager decides otherwise. After a few months of this, the rescues become how the team runs, and more work waits for one person.
- A task slips
- The manager takes it back
- The task is saved
- The team waits for the manager
and the next task slips
What to watch in the first months
The signals show up in how the team runs. Decisions wait for the manager. People bring finished conclusions instead of early bad news. Meetings end with the manager holding most of the actions. Quality may even rise for a while as initiative falls. None of these proves a defect in the leader. Together they show where the transition is producing strain.
Each signal points to one change you can try for a set period and check. Hand over one recurring decision with written limits. Ask for the bad news first. Count who owns the actions. P×E works the same way. It states one behavior, the signal that will show whether it held, and a date to review it.
- Decisions wait for one personHand over one recurring decision, with written limits and a list of what still comes to you.
- People bring conclusions, not problemsAsk for the bad news first in each one-on-one, and do not fix it in the meeting.
- Meetings end with the manager holding the actionsCount who owns each action at the end of the next five meetings.
State the change early
Linda Hill followed 19 new managers through their first year for her 1992 book, Becoming a Manager, subtitled Mastery of a New Identity. She described the move from individual contributor to manager as a profound psychological adjustment, learned mostly through experience.
That is a reason to say early which strength is likely to cost in the new role. The best analyst may need to stop being the final analyst. A decisive operator may need to leave a longer gap before deciding, so that dissent has time to arrive. A well-liked peer may need to set a standard that disappoints former equals. Stating it early gives the new manager, their boss and the team something to watch and correct.
Sources
- Benson, A., Li, D., & Shue, K. (2019). Promotions and the Peter Principle. Quarterly Journal of Economics, 134(4), 2085–2134.
- Hill, L. A. (1992). Becoming a manager: Mastery of a new identity. Harvard Business School Press.
- Wells, G. D. (2026). Right Leader, Wrong Arena.
